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Equatorial Energia S.A.

EQTL3.SA
38
Regulated Electric · Utilities
Price
R$39.65
-0.45 (-1.12%)
Market Cap
R$49.86B
Exchange
B3 S.A.
Winston Score
38
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Sep 13, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
Growth
Mixed
Cash Flow
Good
Stability
Weak
Valuation
Good
Dividends
Good
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Share count rising — dilution

+26.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 991.2M (2021) → 1.26B (2025)

§Winston Score History

The full picture

Equatorial Energia is a Brazilian utility company that distributes electricity to millions of homes and businesses across several states in Brazil, including Maranhão, Pará, Piauí, Alagoas, Amapá, and Goiás. It also operates in electricity transmission and has expanded into water and sanitation services. The company is one of the largest power distributors in Brazil by number of customers served.

Equatorial earns revenue primarily through regulated electricity distribution tariffs set by Brazil's national energy regulator, ANEEL, providing relatively predictable cash flows. It has grown significantly through acquisitions of underperforming regional utilities, then improving their operational efficiency — a strategy that serves as both its core competency and competitive moat. With a market cap around $50 billion, it is among Brazil's largest utilities. Key growth drivers include further expansion into sanitation concessions and new distribution areas, though regulatory changes and the challenge of operating in lower-income regions with higher energy losses remain notable risks.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-54.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

R$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Runway

~4 years

R$33.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

R$33.6B cash & investments at current burn rate

Growth context

Equatorial Energia S.A. is growing revenue at 13% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
36.5%
Modest — 36.5% gross margin
Profit after running costs
Operating Margin
26.6%
Excellent — 26.6% operating margin
Return on the money invested
ROCE
7.5%
Weak — 7.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+12.5%
Fast-growing sales (+12.5% YoY)
Profit growth
EPS YoY
-72.3%
Earnings shrinking (-72.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
309%
Turns 309% of profit into real cash
Spare cash per sale
FCF Margin
-9.1%
Burning cash (-9.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
2.43
Heavy debt load (2.43)
Covers its interest
Interest Cover
1.06x
Dangerous — barely covers interest (1.1x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
51.5x
Expensive — P/E 51.5

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+39.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (51.5 → 12.0)

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Dividends

Dividend
Dividend Yield
0.34%
Small dividend — 0.34% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+10.1%
Dividend growing fast (10.1% YoY)

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